Stock Of The Day: Why Did Beyond Meat Collapse?

Core Viewpoint - Beyond Meat's stock has experienced extreme volatility following the announcement of a distribution deal with Walmart, leading to a significant short-squeeze and subsequent price decline [1][2]. Group 1: Stock Performance - Beyond Meat's shares soared over 700% in just three days due to a short-squeeze, but have since entered a freefall as the squeeze has ended [2][6]. - The stock gave back most of its recent gains, indicating a potential for continued decline [7]. Group 2: Short Selling Dynamics - Short sellers anticipate a drop in stock price by borrowing shares to sell, planning to buy them back at a lower price [3]. - The short-squeeze occurs when short sellers buy back shares to cover their positions as prices rise, creating upward pressure on the stock [5][6]. - The climax of the squeeze leads to a rapid increase in stock price, followed by a potential collapse once buying pressure subsides [6].